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CIRCULAR No

CIRCULAR No. 109/2000/TT-BTC OF NOVEMBER 13, 2000 GUIDING THE REGIME ON THE COLLECTION, REMITTANCE AND USE OF INVESTMENT EVALUATION FEES

Pursuant to the Government�s Decree No. 04/1999/ND-CP of January 30, 1999 on charges and fees belonging to the State budget;

Pursuant to the Government�s Decree No. 52/1999/ND-CP of July 8, 1999 issuing the Investment and Construction Management Regulation, the Government�s Decree No. 12/2000/ND-CP of May 5, 2000 amending and supplementing a number of articles of the Investment and Construction Management Regulation issued together with the Government�s Decree No. 52/1999/ND-CP of July 8, 1999;

After consulting with the Ministry of Construction and the Ministry of Planning and Investment, the Ministry of Finance hereby guides the regime on the collection and remittance as well as the management of the use of investment evaluation fees as follows:

I. FEE PAYERS AND COLLECTION LEVELS:

1. Objects of payment:

For investment projects which are prescribed to have their investment projects, technical designs and total cost estimates evaluated by competent State bodies, the investors shall have to pay evaluation fees according to the provisions in this Circular.

2. The levels of fees for evaluation of investment projects, technical designs and total cost estimates (collectively called investment evaluation fees) are set in the Table of fee levels issued together with this Circular and apply according to the following provisions:

a/ For investment projects which, according to regulations, must be evaluated by the competent State bodies but such State bodies have no adequate conditions to conduct the evaluation and have to hire evaluation experts and consultants, the expenses for hiring of evaluation experts and consultants shall comply with the regulations of the Ministry of Construction. In this case, the State bodies shall be allowed to collect only 50% (fifty percent) of the relevant fee levels set in the Table of fee levels issued together with this Circular.

b/ Groups of works prescribed in the Table of investment evaluation fee levels are construed as follows:

b1. Group 1 comprises mining, mechanical, chemicals, metallurgical, construction materials, light industrial and power works, petro-chemical and processing works, petrol and gasoline depots, explosives and explosive materials depots.

b2. Group II comprises water supply and drainage, communication and postal, signal and lighting works, power transmission lines, oil pipelines and other warehousing works other than those specified in Group I.

b3. Group III comprises agricultural, aquaculture, forestry and irrigation works.

b4. Group IV comprises traffic road (railway and land road) works, taxi ways, airfields, runways, bridges, traffic junctions, signal buoys, traffic tunnels, ferries, river ports, seaports, railway stations and other traffic works.

b5. Group V comprises civil works (dwelling houses, hotels), cultural, educational, medical, sport and physical training, trade and service works, office buildings, and other public works.

3. Determination of investment evaluation fee amounts to be collected:

a/ The bases for determination of investment evaluation fee amounts to be collected shall include the estimated value of already approved investment project (exclusive of value added tax) and the fee level prescribed at Point 2 of this Section. Specifically as follows:

- The investment project evaluation fee = The approved total investment amount x The fee level

- The technical design evaluation fee = The estimated construction and installation value in the approved total investment amount x The fee level

- The total cost estimate evaluation fee = The estimated construction and installation value in the approved total investment amount x The fee level

Where a group of works is of a value falling between the works� values inscribed in the Table of investment evaluation fee levels, the collectible fee shall be calculated according to the following interpolative method:

Nib - Nia

Nit = Nib - {����� x (Git - Gib) }

Gia - Gib

of which:

+ Nit is the evaluation fee that needs to be calculated for the ith group of projects according to their value (calculation unit: %)

+ Gia is the value of the ith group of projects for which the evaluation fee needs to be calculated (calculation unit: the work�s value).

+ Gia is the higher value closest to the value for which the evaluation fee needs to be calculated (calculation unit: the work�s value).

+ Gib is the lower value closest to the value for which the evaluation fee needs to be calculated (calculation unit: the work�s value).

+ Nia is the evaluation fee for the ith group of projects corresponding to Gia (calculation unit: %).

+ Nib is the evaluation fee for the ith group of projects corresponding to Gia (calculation unit: %).

b/ The investment evaluation fee amount to be collected for an investment project shall be determined under the guidance at Item a of this point but shall not exceed:

+ VND 50,000,000 (fifty million)/project, for investment project evaluation fees.

+ VND 114,000,000 (one hundred fourteen million)/project, for technical design or total cost estimate evaluation fees.

In special cases, the Ministry of Finance shall consider and decide the investment evaluation fee amount for each specific project.

c/ For works using typical designs or identical designs, the collectible investment evaluation fee amount shall be equal to (=) the result achieved by multiplying (x) the investment evaluation fee amount calculated according to the provision at Items a and b of this point by the following co-efficient:

- For works using typical designs:

+ First works (or work items): co-efficient 0.36;

+ Second works (or work items) onward: co-efficient 0.18.

- For works using identical designs in the same construction complex or in the same project:

+ First works (or work items): co-efficient 1.

+ Second works (or work items): co-efficient 0.36;

+ Third works (or work items) onward: co-efficient 0.18.

d/ For investment projects for which only investment reports are elaborated, no investment project evaluation fee shall be collected.

II. MANAGEMENT OF FEE PAYMENT, REMITTANCE AND USE

1. The competent State bodies tasked to evaluate the investment shall have to organize the collection of investment evaluation fees according to this Circular (hereinafter collectively called investment evaluation fee-collecting bodies).

The investment evaluation fee-collecting bodies shall have the tasks, powers and responsibilities as defined in Article 14 of the Government�s Decree No. 04/1999/ND-CP January 30, 1999 on charges and fees belonging to the State budget.

2. Monthly, the investment evaluation fee-collecting bodies shall declare and remit into the State budget 25% of the investment evaluation fee amount actually collected in the period according to the corresponding chapter, category and clause prescribed in Section 045 of the State budget contents.

3. The investment evaluation fee-collecting bodies shall be allowed to deduct 75% (seventy five percent) of the actually collected investment evaluation fee amount before making remittance into the State budget to cover the expenses for the investment evaluation and the collection of investment evaluation fees according to the following provisions:

a/ For cases where the State bodies directly conduct the evaluation, the collecting bodies may use the deducted fee amounts to cover the following expenses for the evaluation work and the organization of fee collection:

- Remuneration for people directly involved in the evaluation, including those from other bodies.

- Payment of charges for public, communication services;

- Payment for office supplies;

- Payment of working trip allowances;

- Expenses for repair of assets, machinery and equipment;

- Expenses for meetings and seminars with the concerned bodies in the evaluation process; expenses for short-term professional training courses for people involved in the evaluation;

- Expenses for conducting field surveys at the project sites or operating establishments with similar investment activities;

- Expenses for hiring means and equipment in service of the evaluation, if the agencies have not or not enough means and equipment in service of the evaluation work;

- Making deductions into the reward fund for evaluators and fee collectors. The annual average per capita deduction amount shall not exceed the three months� actually paid salaries;

- Other expenses directly related to the evaluation work.

b/ Where the State bodies have to hire independent experts and consultants to conduct the evaluation and have collected the evaluation fees according to the regulations of the Ministry of Construction, the collecting bodies may use the deducted fee amounts as follows:

- Expenses for the jobs relating to the evaluation work, which fall under the responsibility of the evaluating bodies (except jobs evaluated by hired experts) and expenses for organizing the collection of investment evaluation fees.

- Making deductions into the reward fund for the evaluators and fee collectors. The annual average per capita deduction amount shall not exceed three months� actually paid salaries;

4. The investment evaluation fee-collecting bodies shall have to open accounts for "temporary deposit of collected fee amounts" at the State Treasuries for monitoring and management of the collected evaluation fee amounts; the collection, declaration, payment, remittance, use management and settlement of investment evaluation fees shall comply with the Finance Ministry�s Circular No. 54/1999/TT-BTC of May 10, 1999 guiding the implementation of the Government�s Decree No. 04/1999/ND-CP of January 30, 1999 on charges and fees belonging to the State budget.

Once every five to ten days, the investment evaluation fee-collecting bodies must transfer the collected fee amounts into the temporary deposit accounts and separately account such revenues according to the administrative and public-service accounting regime. The State Treasuries shall base themselves on the collected fee amounts, the expenditure estimates already approved by the competent bodies and the spending requests of the units to make advances or payment to the bodies according to the provisions in the Finance Ministry�s Circular No. 40/1998/TT-BTC of March 31, 1998 guiding the regime on the management, allocation and payment of State budget expenditures through the State Treasury, and the provisions in this Circular.

Annually, on the basis of the superior level�s control figures regarding the estimates of budgetary revenues and expenditures, the investment evaluation fee-collecting bodies must elaborate the estimates of the revenues and expenditures for the investment evaluation fee together with their general estimates of revenues and expenditures. The elaboration and execution of such estimates shall comply with the guidance in the Finance Ministry�s Circular No. 103/1998/TT-BTC of July 18, 1998 guiding the responsibility assignment, elaboration and execution of the State budget settlements.

5. The investment evaluation fee-collecting bodies shall have to make settlement reports on all the collected and spent amounts relating to the investment evaluation fees in accordance with the accounting regime prescribed for administrative and public-service units and current financial regimes.

Where at the yearend the investment evaluation fee amounts left at the units are not spent up, the unused amounts must be remitted into the State budget.

6. The local tax offices that collect the investment evaluation fees shall have to issue vouchers for the collection of investment evaluation fees, guide and supervise the fee collection according to the provisions in this Circular and the Finance Ministry�s Circular No. 54/1999/TT-BTC of May 10, 1999 guiding the implementation of the Government�s Decree No. 04/1999/ND-CP of January 30, 1999 on charges and fees belonging to the State budget.

III. ORGANIZATION OF IMPLEMENTATION

This Circular replaces Decision No. 141/1999/QD-BTC of November 16, 1999 of the Minister of Finance on investment evaluation fees and takes effect 15 days after its signing. Other regulations on investment project, technical design and total cost estimate evaluation fees, which are contrary to this Circular, are now all repealed.

The payers of investment evaluation fees, the units tasked to collect investment evaluation fees and the concerned bodies shall have to implement this Circular.

For the Minister of Finance

Vice Minister
VU VAN NINH

TABLE OF INVESTMENT EVALUATION FEE LEVELS

(File: Og-03Tab)

TABLE OF INVESTMENT EVALUATION FEE LEVELS

(Issued together with Circular No. 109/2000/TT-BTC of November 13, 2000 of the Ministry of Finance)

Calculation unit: %/the work�s value

Evaluation fees

Project groups

The work�s value (in billion dong and exclusive of VAT)

� 0.5

1

5

15

25

50

100

200

500

1,000

2,000

Total investment amount already approved

1. Investment projects

I - V

0.0250

0.0230

0.0190

0.0170

0.0150

0.0125

0.0100

0.0075

0.0047

0.0025

Estimated construction and installation value

2. Technical designs

I

0.1026

0.0855

0.0765

0.0675

0.0450

0.0360

0.0315

0.0225

0.0157

0.0112

0.0056

II

0.0702

0.0585

0.0540

0.0450

0.0315

0.0252

0.0220

0.0157

0.0112

0.0081

0.0045

III, IV

0.0666

0.0558

0.0513

0.0427

0.0301

0.0238

0.0211

0.0148

0.0108

0.0076

0.0040

V

0.0960

0.0720

0.0675

0.0585

0.0382

0.0306

0.0270

0.0193

0.0112

0.0099

0.0055

3. Total cost estimates

I

0.0900

0.0750

0.0650

0.0500

0.0340

0.0240

0.0225

0.0180

0.0115

0.0095

0.0050

II

0.1080

0.0900

0.0800

0.0600

0.0400

0.0340

0.0265

0.0220

0.0165

0.0115

0.0057

III, IV

0.0755

0.0630

0.0560

0.0420

0.0290

0.0280

0.0185

0.0150

0.0115

0.0080

0.0045

V

0.0720

0.0600

0.0530

0.0400

0.0275

0.0265

0.0175

0.0145

0.0110

0.0075

0.0040